sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Service Tax »
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?

GST: Finance Ministry Proposes 3-Year Compensation for States
December, 03rd 2014

The Finance Ministry has proposed to compensate states for three years for losses they may incur on account of switching to a nationwide Goods and Services Tax(GST) regime, as against a demand for a five-year compensation.

"We have tentatively finalised the GST Draft Amendment Bill and have sent it for legislative vetting. The ministry has offered a compensation for 3 years to states for losses incurred on account of switching to the proposed indirect tax regime," Additional Revenue Secretary Rashmi Verma said at an event here.

The states have demanded that such compensations be provided by the Centre for a period of five years under the GST regime, for which the government wants to introduce a Bill in the current session of Parliament.

The GST rollout has missed several deadlines because of lack of consensus among states over certain crucial issues on the new tax regime, which the present government wants to roll out from April 1, 2016.

Ms Verma further said that Union Finance Minister Arun Jaitley will meet State Finance Ministers on December 11 to build consensus on issues related to inclusion of petroleum products, entry tax and compensation funds.

On Monday, Mr Jaitley had expressed hope that the much-awaited GST Bill would be introduced in the current session of Parliament.

"We will try and introduce GST Bill in this session...GST Bill would be taken up by the Cabinet after Empowered Committee (of state finance Minister) meeting on December 12," he had said.

GST will subsume indirect taxes like excise duty and service tax at the central level and VAT on the states front, besides local levies.

There are differences between the central and state governments on some issues with regard to the implementation of GST that includes the revenue neutral rate and keeping petroleum, liquor out of the ambit.

While a sub-committee on GST has suggested that the revenue neutral rate of GST be pegged at about 27 per cent, the states are yet to decide on it.

It had suggested states GST at 13.91 per cent and Central GST at 12.77 per cent.

Besides, states have been demanding that petroleum, alcohol and tobacco should be kept out of the purview of GST.

The GST Constitutional Amendment Bill, which was introduced in the Lok Sabha in 2011, had lapsed and the NDA government will be required to come up with a fresh Bill.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions